More than ever, organizations are seeing the value in investing in talent management solutions. A December 2023 Gartner study shows that Talent Management was the fourth-largest investment area, moving up from the seventh position in the previous year. In talent management, HR leaders invest in three main areas: performance management, employee experience and growth, and leadership development.
Likewise, learning and development have also risen to the top tier of HR investments, rising from fourth place in 2023 to second place in 2024, while total rewards remained in third place.
Learning and Development
According to an August 2023 Gartner survey of more than 280 global boards of directors, business disruptions due to skills shortages are the top workforce related risk to organizational growth in 2024 and 2025. To address this, organizations are investing in Learning and Development (L&D). A December 2023 Gartner survey found that one-third of HR leaders planned to increase L&D spending in 2024 to develop evolving skills at speed and scale, and to focus on agile learning methodologies, adaptive learning, mentoring, manager-led coaching, and technology. This includes generative AI, immersive learning/simulations, AI-enabled skills management tools and learning management systems.
Total Rewards
Issues around pay transparency, forthcoming legislation worldwide, and an increasingly fractured employee-employer relationship keep total rewards initiatives in the spotlight.
A 2023 Gartner survey of more than 18,000 global employees found that employees consistently cite compensation as their number one reason to accept or leave a job. However, mental health and wellness is also a factor, as persistent workplace and societal disruptions over the last five years have taken a toll on employees’ mental and physical health. According to the Gartner report, pay transparency legislation will take effect over the next two years, requiring HR leaders to invest in employee recognition programs and rewards communication to ensure pay equity and comply with new legal requirements. To improve employee well-being and ensure a productive workforce, HR leaders must also invest in well-being support that goes beyond traditional offerings and is embedded in the daily flow of work.
Talent Management
In the area of talent management, HR leaders are investing in three main areas: performance management, employee experience and growth, and leadership development.
HR leaders invest in transparent and flexible career paths, internal mobility opportunities, and agile upskilling to drive retention and performance in an increasingly complex environment. Talent management technology investments target topics such as internal marketplaces, AI-enabled skills management tools, and succession planning technology to effectively close skill gaps, facilitate growth, and enhance the employee experience.